How to See What the Current Market Is Like In Your Neighborhood
If you’re thinking of selling your home, but you’re not sure if this is the right time, you’re not alone. It’s understandable to be hesitant about timing, since it plays a big role in your ability to achieve a quick and lucrative sale. Is the local real estate market on your side, or is this not a good time to sell a house in your neighborhood?
There are two things you should do to determine if now is a good time. The first, call three different realtors and ask them what they estimate the sale price is for your home. Second, do your own research. On that note, here are a few specific factors to examine when determining whether or not to sell your home at this time:
Look at the Comps in Your Neighborhood
Step one for determining the state of the local real estate market is examining the “comps,” or comparable properties in your neighborhood that were recently sold. These are homes with a similar size, age, and are geographically close to your home. Comps are the primary criteria real estate agents use to determine if a house is priced correctly. If your home’s for-sale price is significantly higher than similar homes in your neighborhood, agents should tell their buyer’s that the home is overpriced.
One of the trickier parts is determining what is your neighborhood. Look for the natural borders. In the Gables & South Miami, it’s typically US-1. In Pinecrest, it’s Ludlam. Look at the average for-sale price and selling price for your neighborhood’s comps for the past six months. This can tell you what buyers are willing to pay for homes like yours at this time.
How Much Time are Houses Spending on the Market?
Next, look up how much time the comps in your neighborhood are spending on the market before they are sold. This is a very helpful metric for determining the level of demand for a home like yours, along with the level of competition you may be facing.
If homes are staying on the market for several months, it could mean that potential buyers are taking their time because they have so many houses to choose from. If homes are selling quickly, often it could mean your neighborhood is in high demand, and potential buyers are aggressively making offers once they find a home they like.
How Much Inventory is Available?
Lastly, a key indicator of a buyer’s or seller’s market is the amount of inventory for sale in your neighborhood right now. When there’s at least six months’ worth of inventory available, it’s considered a buyer’s market because sellers have to compete with each other to make their homes stand out from the heavy competition. When there’s less than six months of inventory available, it’s considered a seller’s market because potential buyers have to do the competing, which often results in bidding wars and multiple offers over asking price.
In the end, each realtor should give you similar information to the research you did yourself. Pick the one that feels right.
If you’re thinking of selling your home but aren’t sure if this is the right time, the Kern Team is happy to help. We can answer any questions you may have about your local real estate market, and how this will affect the home selling process. Educating our clients is a top priority of ours, since selling a home is infinitely less stressful when you actually know what you’re getting into.
Get in touch with us today and we’ll determine the best course of action for selling your home!
